Whether you choose to buy or lease a new ride with Apple Honda of York, you have great options to fit your budget, driving preferences, and lifestyle. Before you make any financial decisions, though, it's important to look over your options so that you feel prepared to make a choice that works for you. Read on to learn about buying versus leasing a vehicle from your local Honda dealer in York, Pennsylvania.

What Does It Mean To Buy a Car?

Car superimposed over a 100 dollar bill in York, PA

Money Car by Pictures of Money is licensed with CC BY 2.0

When you purchase a car, you pay your dealer the amount specified for a vehicle, and then you own it. If you have the funds available, you can pay for the vehicle's full cost outright. However, many buyers choose to take out a car loan to purchase their ride.

When you do this, you can borrow money from a bank, credit union, or other institution and make monthly payments until you own full equity of the vehicle. Before selecting a loan option, you can discuss terms, like the interest rate and payment amounts, with the lender. Our expertly staffed finance center can answer any questions you have about a loan and go over your options so that you feel comfortable with your investment.

What Does It Mean To Lease a Car?

Leasing a car is slightly different from buying one. When you enter a lease, you agree to make a monthly payment for a set term in exchange for the ability to drive the vehicle during that time. Once the time limit comes to an end, you return the vehicle to the dealer. Unlike buying, leasing does not result in ownership of the vehicle, although many drivers may find the lower monthly payments attractive. Comparing these two options can help you make a decision about which one works best for you.

Buying vs. Leasing

Here are some of the key differences between buying and leasing:

Ownership

When you buy a vehicle, you pay to own the car, with the car's title landing in your name. When you lease, however, you pay to use your Honda and then return it when the lease ends. If ownership is important to you, buying may be a better option, but if not, you may want to consider a lease.

Payments

When you buy a vehicle, you may offer a large down payment, which refers to the amount of money you pay before making monthly payments. With a lease, you may have a smaller down payment, resulting in fewer required costs upfront. In terms of monthly payments, buying often comes with higher cost amounts, although this can depend on the term of your lease. For a lease, monthly payments are often lower and can also depend on your lease's terms. 

Mileage

A huge benefit of buying a car is that you have no mileage restrictions. This means you can drive wherever you want and whenever you want. For a lease, you may have mileage limits that depend on the terms of your lease agreement. Since you're technically borrowing the car, you may have to follow a set of specified rules to keep it in quality condition for its return.

Maintenance

If you choose to purchase a vehicle, you may receive a warranty that covers repairs and service for a specified amount of time. Outside of this time frame, you may be responsible for any repair costs. As the car gets older, these required costs can increase dramatically. When you lease, you may service the vehicle according to the dealer's recommendations to keep it in top condition. Depending on the vehicle and your terms, a leased vehicle may also be under warranty, meaning the dealer covers that service for the duration of your agreement.

Benefits of Buying

There are many reasons that a driver may want to buy a vehicle. While monthly payments can be higher initially, they'll stop once you've paid off the vehicle's price. At this point, you'll own the ride, which means you'll be free to drive it whenever. If you ever choose to part with your vehicle, you can always sell it or trade it in for a newer model. If you have the financial ability to take on a loan for the time being, you may want to look into the benefits of buying.

Benefits of Leasing

Leasing can also be a great option for those who prefer its terms. When you lease a vehicle, you can drive a new model vehicle whose freshness might limit the issues you encounter on the road. With lower monthly payments than those associated with a car loan, you can often drive a better, more expensive vehicle than you might otherwise be able to afford.

While there are mileage limits for a leased vehicle, and potential fines for exceeding them, this may not be a problem for those who don't expect to drive their vehicle much. At the end of your lease term, you're free to return your car and move on to your next option, whether it's another lease or a transition to ownership. For those looking for an exceptional temporary ride at a lower cost, leasing could be an ideal choice.

Why Choose Apple Honda of York?

At your local Apple Honda, we have an extensive collection of new Hondas ready for purchase or lease. Not only will we help you find a vehicle that you'll love, but we'll also go above and beyond to help you find a financing option that truly works for your budget. Our trained staff can help you drive off the lot with an investment that fits your lifestyle.

Before choosing a financing option for a vehicle, it's important to consider all the possibilities. A car can be a big decision, and we hope that our helpful staff can help you feel comfortable before making it. Have any questions about the buying process or what it might look like to buy or lease a Honda? You can contact us today and get the wheel rolling forward on your dream Honda.

Categories: Finance